By Orbex
The internal structure of the EURUSD pair suggests the construction of a downward correction pattern. This takes the form of a triple zigzag of the primary degree with sub-waves Ⓦ-Ⓧ-Ⓨ-Ⓧ-Ⓩ.
It seems that the bearish primary wave Ⓨ has ended, which took the form of a triple zigzag (W)-(X)-(Y)-(X)-(Z) of the intermediate degree. Prices then moved upwards within the primary intervening wave Ⓧ, taking the form of a simple zigzag (A)-(B)-(C).
Moreover, at the specified level, the primary wave Ⓧ will be at 50% of wave Ⓨ.
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Let’s consider another option in which the intervening wave Ⓧ could already be fully complete. According to this view, it is a triple three (W)-(X)-(Y)-(X)-(Z).
In this case, we can expect the formation of a descending primary wave Ⓩ. This actionary wave is likely to take a complex triple zigzag formation (W)-(X)-(Y)-(X)-(Z). The approximate internal structure of the sub-wave Ⓩ is shown by trend lines.
The end of the correction decline in the primary wave Ⓩ is likely near 1.0833. At that level, primary wave Ⓩ will be at the 61.8% Fibonacci extension of wave Ⓨ.
After the completion of the primary pattern, a new bullish trend will update the maximum of 1.1498.
Article by Orbex
Orbex is a fully licensed broker that was established in 2011. Founded with a mission to serve its traders responsibly and provides traders with access to the world’s largest and most liquid financial markets. www.orbex.com
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